After a shocker last week, it was better news for Carillion (LON:CLLN) this morning after winning a pair of HS2 contracts worth £1.4bn as part of its CEK joint venture with Eiffage (LON:0NPT) and Kier Group (LON:KIE).
The stock rose 6.5% on the open – a healthy move normally but small fry when measured against last week’s 71% fall.
This ought to help its share price but whether it can deliver these contracts is another matter. It could make it a slightly more attractive prospect to rescue if it comes to that. But it’s hard to see an awful lot to be cheerful about. This stock could have further downside. We await the outcome of what HSBC (LON:HSBA) and EY can achieve to get the firm out of this mess.
Balfour Beatty (LON:BALF) was another big winner, claiming two contracts worth £2.5bn alongside JV partner Vinci (LON:0NQM). Shares in the company rose over 1% on the open.
Away from HS2, Weir Group (LON:WEIR) shares jumped 7% after reporting stronger US earnings thanks to ‘increased volumes, stronger operating leverage and modest pricing recovery’. After a pessimistic end to last year there is reason to be a lot more confident. It’s leaner after the collapse in oil prices and the tough cost-cutting is bearing fruit.
Carolyn McCall: Goodnight Vienna
Carolyn McCall won’t be shuttling weekly between Luton and the Austrian capital after it was announced that she is off to head up ITV (LON:ITV) following the exit of Adam Crozier.
It comes at a pivotal moment for EasyJet (LON:EZJ), as the airline repositions its business in the wake of Brexit. Last week it announced it would open a new European HQ in Vienna but there remains anxiety (shared by Ryanair (LON:RYA)) over the ease of flying between the UK and EU after Brexit.
EasyJet shares slid close to 1% on the open and ITV rose 2% - a mark of the respect shown by investors and a signal that she’s likely to be a steady hand on the ship for ITV as it too faces its own problems with cord cutters, falling ad revenues and the chase for content.